Imports of Cooking Coal by Indian steel makers are pegged at 50 million tons (mt) in 2016. This is 14% higher than imports of the country in 2015. India imported 43.7 mnt Cooking Coal in 2015. Inbound coking coal shipments are likely to go up due to the minimum import price and imposition of safeguard duty.
India imports two-third of the total coal consumption by the steel sector. India’s Crude Steel production capacity is estimated at 300 mnt by 2025 which is a three-fold increase from the present level.
In the international markets, prices of Cooking Coal have been declining for the past two years which makes imports of the material cheaper and a workable option for steel companies in India.